Subcommittee Okays Gas Tax Collection Bill

TALLAHASSEE — A House subcommittee Thursday passed a proposed bill to revamp Florida's gas tax collection system that is expected to stop millions of dollars in tax thefts.

State Revenue Director Randy Miller said the measure approved by a House Finance and Tax subcommittee provides stringent reporting requirements that will help the state determine exactly how much gas is being sold by wholesalers.

As a result, state auditors will be able to ensure the state gets its fair share from those sales.

''Under this, once a wholesaler has gasoline, he cannot dispose of it without paying the tax,'' Miller said. ''Because if we don't get a report from these people, we'll be checking on them.''

Miller said he has heard estimates that the state has lost between $8 million and $13 million in tax revenues since 1983 to fly-by-night wholesalers. Others have estimated the loss could run as high as $200 million. The thefts began after the state decided to impose its 5 percent sales tax on gasoline sales.

Lawmakers decided to have the tax collected at the wholesale level.

However, the law provides that the tax must only be paid when the wholesaler sells the gasoline to an unlicensed middleman or a gas station.

Wholesalers are allowed to sell to each other without paying a tax and some have set up a paper trail of sales, pocketed the money and shut down before the state could investigate.

''Under this bill a wholesaler will not be able to purchase from another wholesaler,'' said Rep. Tom Brown, D-Port Orange, who chairs the general taxation subcommittee. ''It puts an end to the idea of the long string of paper transactions that have created the problem.''

The bill provides for comprehensive background checks on key individuals connected with oil refiners, importers and wholesalers -- all of whom must obtain annual license renewals from the state.

Licenses would be denied to anyone believed not to be of moral character or who has been convicted of a felony.

Miller said the bill is not expected to have any problems in the House or Senate.